FEES FOR MEDICAL-MARIJUANA CREATE BUDGET SURPLUS

Advocates want more of the funds to go toward patients As the number
of medical-marijuana patients continues to rise in Oregon, the
accompanying licensing fees have generated a substantial budget surplus.

The Oregon Medical Marijuana Program reported a surplus of about
$986,000 by the end of March.

The patient-registration program was created after the Oregon Medical
Marijuana Act took effect in 1998. The program started without state
funding in 1999 and has operated solely on patient fees.

More than 10,000 patients are registered. Estimates for the program's
first years were between 500 and 1,000 participants.

Based on projections, application fees were set to cover a $100,000
price tag for launching the agency, said Dr. Richard Bayer,
Administrative Rules Committee member for the state's
medical-marijuana act.

The goal was surpassed within two years.

As a result of the greater participation, the Department of Human
Services cut annual renewal fees in July 2003.

Since then, registration has almost doubled, and further reductions
are being sought.

"It's extremely difficult to predict this program," said Chris Grorud,
DHS program support manager.

Some of the surplus will go to the state's general fund and to develop
a 24-hour verification system that law enforcement officials could use
to confirm legal cardholders.

Medical-marijuana advocates want to see more of the funds directed to
patient-care resources.

Once patients receive their registry cards, they have no federal
referrals about where to go or how to grow plants, said Madeline
Martinez, executive director of the Oregon National Organization for
the Reform of Marijuana Laws.

Those issues are beyond the program's realm, according to state Public
Health Officer Grant Higginson.

"The program is not meant to be an advocate for the medical-marijuana
act," Higginson said. "It is currently felt that to provide that information
is beyond administrative duties."

The program will continue to focus only on processing applications,
issuing state registry cards and handling renewals. All information
for patients is available on the program's Web site and in printed
form, said Mary Leverette, acting program manager.

The resources include statutes, application instructions, basic facts
and statistics.

Although the state does not contribute to the program, about $26,000
of its surplus will be transferred to the state general fund, Grorud
said.

People in the Oregon Health Plan or receiving Supplemental Security
income pay less for applications and renewals.

The program's Administrative Work Group is considering further fee
reductions, which might take effect as early as 2005, Higginson said.

Registry fees

Application fees for a program-registry identification card:

A new application is $150, or $50 for people on the Oregon Health Plan
or receiving Supplemental Security Income.

A renewal application is $100, or $50 for people on the OHP or
receiving SSI.

For more information, call (503) 731-4002, Ext. 233.